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Sony cuts mid-range devices from strategy

News by Luke Jones on Wednesday September 17, 2014.

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Sony has been quiet on the smartphone front this year. Sure, you may be thinking about the flagship devices that the company has launched this year from the Xperia Z range, but there have not been a slew of mid-range and low end efforts in 2014. The ailing giant has gone someway to explaining that by confirming that it will be cutting down on mid-tier and budget smartphones in the future.

The Xperia smartphones are almost all very good, especially the Z3 and Z3 Compact flagships released recently. However, Sony still struggles to gain significant market share and increased competition across all levels has taken its toll. With its PC business gone, TV business on the wane, the company simply cannot afford to ride the cost of failing handsets.

Its revised forecast for the financial year ending March 2015 has meant that the company has confirmed an impairment charge of 180 million yen. Sony has been discussing revising its mid-range smartphone since the end of the second quarter, and after reviewing their market performance the company has changed its strategy "to reduce risk and volatility, and to deliver more stable profits."

Sony has instead revealed that it will be focusing on its high end smartphones and tablets, most of which fall under the Xperia Z series. What that means for handsets like the Xperia M2 remains to be seen, but I imagine they will still be produced. The company will push its premium models in new regions and focus on key markets for growth (the US must be included in this) and will reduce its mid-range output.

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Luke Jones
Luke Jones is the Managing Editor at MobileBurn.com and is the person you need to speak to about the content on the site. Luke studied creative writing at degree level before carving out a reputation as a freelance tech writer. He settled here at MobileBurn, where he reviews devices and contributes to the news, as well as overseeing the site's content and direction.

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